In 2009 Ben Crawford was appointed CEO of CentralNic Group Plc (LON:CNIC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for CentralNic Group
How Does Ben Crawford's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that CentralNic Group Plc has a market cap of UK£162m, and reported total annual CEO compensation of US$538k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$230k. When we examined a selection of companies with market caps ranging from UK£77m to UK£310m, we found the median CEO total compensation was UK£466k.
So Ben Crawford receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at CentralNic Group has changed from year to year.
Is CentralNic Group Plc Growing?
On average over the last three years, CentralNic Group Plc has shrunk earnings per share by 87% each year (measured with a line of best fit). In the last year, its revenue is up 165%.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has CentralNic Group Plc Been A Good Investment?
Most shareholders would probably be pleased with CentralNic Group Plc for providing a total return of 89% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Ben Crawford is close enough to the median pay for a CEO of a similar sized company .
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CentralNic Group (free visualization of insider trades).
Important note: CentralNic Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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